The Settlement Agreement reflects that the whistleblower, Marc Osheroff, filed a lawsuit under the qui tam provisions of the federal False Claims Act, as well as the state False Claims Acts of Florida, California, Texas, and Tennessee in July 2009. The United States, Florida, California, Texas, and Tennessee declined to intervene in the qui tam action. The whistleblower chose to proceed with the case on his own.

The whistleblower alleged that Tenet engaged in improper financial relationships with numerous physicians in violation of the Stark Law and the Anti-kickback Statute. Specifically, the whistleblower alleged that, between 2005 and 2013, Tenet entered into medical office building leases with the physicians at rates that were below fair market value. Tenet then allegedly submitted false claims to Medicare for inpatient and outpatient services referred by those same physicians, in violation of the False Claims Act.

As his reward under the qui tam provisions of the False Claims Act the whistleblower will receive $1,000,000 of the settlement proceeds. In addition, Tenet will pay an additional $1,000,000 for the whistleblower’s attorneys’ fees and costs.